DENVER — Denver District Judge Andrew J. Luxen temporarily halted the proposed supermarket merger between Kroger and Albertsons, the parent company of Safeway on Thursday.
Two years ago, the two companies agreed to merge in a deal worth $24 billion. As part of the merger, Kroger will divest and sell 579 stores, including the Alamosa Safeway store, to C&S Wholesale Foods, a major player in the grocery distribution industry.
Earlier this year, Colorado Attorney General Phil Weiser filed a lawsuit against the merger due to concerns it would negatively impact jobs and food prices and eliminate competition.
AG Weiser released a statement in response to the court injunction Thursday morning.
"I am pleased that Kroger and Albertsons agreed to halt their plans to merge until the court rules on the state's lawsuit to permanently block the grocery merger. This is great news for shoppers, workers, farmers, and other suppliers, who can rest assured that this mega-merger will not go into effect during harvest season and while kids are headed back to school.
“The trial is set to begin on September 30, and my office looks forward to making the case that this merger will eliminate competition and impact food prices, jobs, and consumer choice.
"As Colorado's attorney general, I take very seriously our department's responsibility to review mergers that threaten Colorado consumers. At a time of rising food prices, the possibility of undue consolidation in the grocery business raises serious concerns, particularly since King Soopers and Safeway have a large footprint in Colorado.
“My department and I will closely monitor and review this proposed merger between Kroger and Albertsons to ensure it does not harm consumers or workers," Weiser said when he filed the lawsuit.
United Food and Commercial Workers Union Local 7 President Kim Cordova issued the following statement in response to the preliminary injunction to halt the proposed mega-merger between Kroger and Albertsons.
"We're pleased with the court's decision to temporarily halt the proposed mega-merger, which would have devastating impacts in communities here in Colorado and across the country. Our members and customers alike are concerned about potential job losses, food and pharmacy deserts, increased food prices, cost to families," Cordova stated.
